Boomer Parents Funding Millennial Homeownership
(December 2, 2011, From Cam Marston of Generational Insights)
At least 20% of Baby Boomers are helping their Millennial children or grandchildren realize the dream of homeownership, according to a Better Homes and Gardens survey. One in five Boomers surveyed had gifted, loaned, or co-signed in support of a Millennial’s purchase of a home. More than two-thirds expressed a desire to provide such support in the future to their children or grandchildren, many intending to do so on multiple occasions.
This growing trend highlights a generational imbalance in wealth – Matures and Boomers have accumulated a lot of it whereas Millennials are finding it more difficult to get hold of than previous generations. The Boomers surveyed said they were motivated by their feelings for their children and grandchildren, but a more important factor for them is their belief in homeownership as the principal building block of personal wealth for their offspring.
It also points to the generational affinity between Millennials and their Boomer parents, a basic principle of generational marketing and selling. When it comes to “life” purchases such as homes, cars, and investments, you will often need to be able sell to Millennial buyers AND to their Boomer parents.